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The Bureau of Alcohol, Tobacco, Firearms and Explosives has acknowledged an Indiana dealers cooperation in conducting straw purchases at the direction of the Bureau of Alcohol, Tobacco, Firearms and Explosives. Exclusive documents obtained by Gun Rights Examiner show the dealer cooperated with ATF by selling guns to straw purchasers, and that bureau management later asserted these guns were being traced to crimes.

From the confidential source providing the documents:

The dealer was sent a "demand letter," based on the number of traces to him, which was retracted after his attorney pointed out they resulted from his cooperation with ATF. (Strangely, he got two voicemails from two different ATF people, both saying they were the head of the tracing operation).

Some of the straw men turned out to have felony convictions, the agents called the FBI background check system and fixed it so the transactions would be approved, something which may also have happened in Phoenix. (The attorney wasn't clear as to whether the guns were actually delivered to the gangs).
If the guns did not make it to criminal end users, why the demand for the reporting requirement was made remains unexplained: A demand letter, dated February 14, 2011 and signed by Charles J. Houser, Chief, National Tracing Center Division, informed the dealer he was required to provide acquisition and disposition information on firearms obtained from non-licensees, as well as to provide quarterly reports, based on ATFs assessment that the dealer had an unusually high number of traces of new crime guns with a relatively short time-to-crime 
....

The response letter resulted in a voice mail from Houser to Weil on March 15, 2011, ignoring his request for the list of guns, but promising:

If that count is composed of firearms that were, where your client was working in conjunction with ATF, we will get your client removed entirely from the program.
That same day, another voice mail was received, this time from Brenda Bennett, also identifying herself as Chief of the National Tracing Center, who informed Weil:

I have verified the information in the letter. I talked to law enforcement and they confirmed what he had to say. Therefore, he is being removed from the demand list.

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